Country Reports on Terrorism: 2004

Editor's note: The report below was edited from information released in April 2005 by the Office of the Coordinator of Counterterrorism of the U.S. State Department. This report is reproduced here to aid in increasing awareness of terrorism as a growing concern for citizens of all nations and to provide summary information on U.S. government programs to combat terrorism.

LEGISLATIVE REQUIREMENTS AND KEY TERMS

This report is submitted in compliance with Title 22 of the United States Code, Section 265 of (the "Act"), which requires the Department of State to provide Congress a full and complete annual report on terrorism for those countries and groups meeting the criteria of the Act. Statutory excerpts relating to the terms used in this report and a discussion of the interpretation and application of those terms in this report are included below.

Statutory Excerpts

Section 2656f(a) of Title 22 of the United States Code states as follows:

(a) The Secretary of State shall transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate, by April 30 of each year, a full and complete report providing—

(1) detailed assessments with respect to each foreign country –

(A) in which acts of international terrorism occurred which were, in the opinion of the Secretary, of major significance;

(B) about which the Congress was notified during the preceding five years pursuant to section 2405(j) of the Appendix to Title 50; and

(C) which the Secretary determines should be the subject of such report;

(2) all relevant information about the activities during the preceding year of any terrorist group, and any umbrella group under which such terrorist group falls, known to be responsible for the kidnapping or death of an American citizen during the preceding five years, any terrorist group known to be financed by countries about which Congress was notified during the preceding year pursuant to section 2405(j) of the Appendix to Title 50, and any other known international terrorist group which the Secretary determines should be the subject of such report;

(3) with respect to each foreign country from which the United States Government has sought cooperation during the previous five years in the investigation or prosecution of an act of international terrorism against United States citizens or interests, information on

(A) the extent to which the government of the foreign country is cooperating with the United States Government in apprehending, convicting, and punishing the individual or individuals responsible for the act; and

(B) the extent to which the government of the foreign country is cooperating in preventing further acts of terrorism against United States citizens in the foreign country; and

(4) with respect to each foreign country from which the United States Government has sought cooperation during the previous five years in the prevention of an act of international terrorism against such citizens or interests, the information described in paragraph (3)(B).

Section 2656f(d) of Title 22 of the United States Code defines certain key terms referred to in Section 2656(a) as follows:

(d) (1) the term "international terrorism" means terrorism involving citizens or the territory of more than one country;

(2) the term "terrorism" means premeditated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine agents; and

(3) the term "terrorist group" means any group practicing, or which has significant subgroups which practice, international terrorism.

Interpretation and Application of Key Terms

For purposes of this report, the terms "international terrorism," "terrorism," and "terrorist group" have the definitions assigned to them in 22 USC 2656f(d) (see above). The term "noncombatant," which is referred to but not defined in 22 USC 2656f(d)(2), is interpreted to mean, in addition to civilians, military personnel (whether or not armed or on duty) who are not deployed in a war zone or a war-like setting.

It should be noted that 22 USC 2656f(d) is one of many US statutes and international legal instruments that concern terrorism and acts of violence, many of which use definitions for terrorism and related terms that are different from those used in this report. The interpretation and application of defined and related terms concerning terrorism in this report is therefore specific to the statutory and other requirements of the report, and is not intended to express the views of the US Government on how these terms should be interpreted or applied for any other purpose. Accordingly, there is not necessarily any correlation between the interpretation of terms such as "noncombatant" for purposes of this report and the meanings ascribed to similar terms pursuant to the law of war (which encapsulates the obligations of states and individuals with respect to their activities in situations of armed conflict).

Contextual Reporting

Adverse mention in this report of individual members of any political, social, ethnic, religious, or national group is not meant to imply that all members of that group are terrorists. Indeed, terrorists rarely represent anything other than a tiny fraction of such groups. It is those few—and their actions—that are the subject of this report.

Furthermore, terrorist acts are part of a larger phenomenon of politically inspired violence, and at times the line between the two can become difficult to draw. This report includes some discretionary information in an effort to relate terrorist events to the larger political context in which they occur, and to give a feel for the conflicts that spawn violence. Thus, this report will discuss terrorist acts as well as other violent incidents that are not necessarily international terrorism and therefore are not subject to the statutory reporting requirement.

OVERVIEW

"The appeal of justice and liberty, in the end, is greater than the appeal of hatred and tyranny in any form." President Bush, July 12, 2004

Terrorism remains a global threat from which no nation is immune. Despite ongoing improvements in US homeland security, military campaigns against insurgents and terrorists in Iraq and Afghanistan, and deepening counterterrorism cooperation among the nations of the world, international terrorism continued to pose a significant threat to the United States and its partners in 2004. The slaughter of hundreds of innocents in the Beslan school, in the commuter trains of Madrid, on a Philippines ferry, and in a Sinai resort proved again that the struggle against terrorism is far from over. Over the long run, the spread of democracy and economic and social reform, sustained and encouraged by the United States and others, should promote political, economic and social conditions inhospitable to terrorist exploitation. For now, however, the tasks confronting the United States and its partners in the struggle against terrorism remain formidable.

A look back on the events of 2004 in the global war on terrorism reveals the following:

Casualties

There were no terrorist attacks in the US homeland.
Many other countries were hit by terrorist attacks; the most deadly, like Beslan, Madrid, and the Philippines ferry, were committed by local groups, many inspired by or linked to al-Qa'ida.
American deaths due to terrorist attacks were confined to Iraq, Saudi Arabia, Afghanistan, Egypt and Gaza.
The overwhelming majority of victims of terrorist attacks were citizens of countries other than the United States. Many victims were Muslims.

The al-Qa'ida Threat

The primary terrorist threat to the United States in 2004 continued to be al-Qa'ida, which remained intent on attacking the US homeland as well as US interests abroad.
The United States and its partners, however, degraded al-Qa'ida and its affiliates'leadership abilities and depleted the ranks of their operatives.
Al-Qa'ida, weakened operationally, adapted by spreading its ideology to local groups throughout the world. Al-Qa'ida-affiliated groups and locally-based extremists continued to be inspired or assisted by Usama bin Ladin and other al-Qa'ida leaders.

International Cooperation

The diffusion of the al-Qa'ida ideology in many countries makes even more crucial the need for deeper international cooperation to defeat emerging violent extremist groups.
The United States and other donor nations must intensify current efforts to bolster the political will and the intelligence, law enforcement, financial and military capabilities of partner nations to combat terrorism, on their own or with us.
The United States and its partners must work together to prevent the spread of al-Qa'ida ideology and the growth of jihadist terror.
The United States and its partners must also continue efforts to defeat non-al-Qa'ida terrorist groups, discourage state sponsorship of terrorism, and prevent terrorist access to weapons of mass destruction (WMD).

The Evolving Terrorist Threat

Al-Qa'ida leadership was degraded through arrests and ongoing Pakistani operations to assert greater control along the border with Afghanistan where some al-Qa'ida leaders are believed to hide. Numerous al-Qa'ida and affiliated foot soldiers were captured or killed during the year.

Pakistani authorities captured al-Qa'ida communications expert and Heathrow bomb plot suspect Naeem Noor Khan and US Embassy bombing suspect Ahmed Khalfan Ghailani in July 2004, and killed Amjad Farooqui, suspected in the murder of US journalist Daniel Pearl, in September 2004.

Saudi security forces killed several top leaders of the al-Qa'ida organization in Saudi Arabia, including Khalid Ali al-Hajj and Abdulaziz al-Muqrin.

Abu Bakar Ba'asyir, leader of the al-Qa'ida-affiliated Jemaah Islamiya remained in jail pending his early 2005 trial for involvement in the 2002 Bali bombings.

The Filipino Antiterrorism Task Force captured seven foreigners in 2004 believed to be elements of al-Qa'ida and Jemaah Islamiya.

British authorities in August 2004 arrested suspected al-Qa'ida-affiliated individuals who were subsequently indicted in the United States for plotting to attack financial institutions in the United States.

Many senior al-Qa'ida leaders remained at large, continued to plan attacks against the United States, US interests, and US partners, and sought to foment attacks by inspiring new groups of Sunni Muslim extremists to undertake violent acts in the name of jihad. In some cases, al-Qa'ida attempted to bring other extremist groups under its banner, while in other cases, groups claimed allegiance to al-Qa'ida despite little evidence of any connection with al-Qa'ida leaders. In still other cases, the existence of new groups only became evident following an attack.

Al-Qa'ida cells continued to carry out attacks in Saudi Arabia throughout 2004.
Al-Qa'ida-affiliate Jemaah Islamiya continued to plot attacks against the United States, Australian and other foreign interests in Indonesia, bombing the Australian Embassy in September 2004.
The al-Qa'ida cell in East Africa, including terrorists linked to the 1998 bombings of US Embassies in Nairobi and Dar es Salaam and the 2002 attacks on a Mombasa hotel and an Israeli commercial aircraft, remained at large, and are suspected of planning new attacks.
Notorious terrorist Abu Musab al-Zarqawi pledged the fealty of himself and his group in Iraq to bin Ladin; al-Zarqawi is now the recognized leader of al-Qa'ida in Iraq.
The March 2004 bombing of commuter trains in Madrid that killed 191 innocent people was executed by a previously unknown group of jihadist terrorists (mostly Moroccan immigrants resident in Spain for years) inspired by, but without direction from, al-Qa'ida.
The new leader of the GSPC in Algeria announced his affiliation with al-Qa'ida, but there was no evidence of assistance or direction from al-Qa'ida leadership.

The latter two incidents illustrate what many analysts believe is a new phase of the global war on terrorism, one in which local groups inspired by al-Qa'ida organize and carry out attacks with little or no support or direction from al-Qa'ida itself.

As al-Qa'ida itself weakens and local groups take on greater responsibility for planning, acquiring resources and carrying out attacks in their localities, it will be ever more important for the United States to help partners who require assistance to counter this new manifestation of the terrorist threat. Furthermore, although al-Qa'ida remains the primary concern regarding possible WMD threats, the number of groups expressing an interest in such materials is increasing, and WMD technology and know-how is proliferating within the jihadist community.

International Cooperation

International cooperation is an integral and growing aspect of the overall US "National Strategy for Combating Terrorism" which calls for:

Defeating terrorist organizations by eliminating their sanctuaries, leadership, finances, and command, control and communications capabilities;
Denying further sponsorship, support, and sanctuary to terrorists by cooperating with other states to take action against those who provide support;
Diminishing the underlying conditions that terrorists seek to exploit by enlisting the international community to focus our mutual efforts and resources on addressing legitimate political and social needs and by reducing security vulnerabilities in the countries most at risk; and
Defending the United States, its citizens, and interests at home and abroad.

The continuing threats by al-Qa'ida make necessary the continued investment of enormous effort and resources by the Department of Homeland Security, the FBI, Department of Justice, Department of State, and Department of Defense (among other federal agencies), as well as state and local governments, in new and strengthened homeland defense measures. They also require a growing level of international cooperation between the United States and its many partner nations around the world to interdict terrorists, disrupt their planning, restrict their travel, reduce the flow of financial and material support to terrorist groups, and enable partner governments to assert control over weakly governed territory where terrorists find sanctuary.

In 2004, the United States broadened and deepened its international cooperation on counterterrorism issues. Increased diplomatic, intelligence, law enforcement, military and financial cooperation contributed directly to homeland security and the interdiction or disruption of terrorists around the globe. Examples are discussed throughout this report, but the following successes stand out for 2004:

Close cooperation with British, French, and other authorities–coordinated through the State Department and US Embassies in London, Paris and else where–was pivotal to managing threats to airline security during the 2003-2004 New Year period.
Information-sharing with the United Kingdom and Pakistan led to the disclosure and disruption of al-Qa'ida attack planning against US financial institutions.
US diplomatic and military assistance facilitated cooperation among Algeria, Mali, Mauritania, Niger, Libya and Chad that led to the capture and return of wanted GSPC factional leader al-Para to Algeria to stand trial.
Law enforcement officers in Iraq, Colombia, Indonesia, the Philippines, Saudi Arabia, and Pakistan (among others) applied US specialized counterterrorism training to bring terrorists to justice.
Working with a broad spectrum of domestic and international partners, the United States has identified and disrupted many sources of terrorist finance.
The United States used its G8 presidency in 2004 to advance new international transportation security measures and to coordinate international counterterrorism assistance among G8 and other donors, ensuring that counterterrorism needs of states requiring assistance were addressed and wasteful duplication avoided.

Notably, 2004 was marked by progress in decreasing the threat from states that sponsor terrorism. Iraq's designation as a state sponsor of terrorism was formally rescinded in October 2004. Libya and Sudan took significant steps to cooperate in the global war on terrorism. Unfortunately, Cuba, North Korea, Syria, and, in particular, Iran continue to embrace terrorism as an instrument of policy. Most worrisome is that these countries also have the capabilities to manufacture weapons of mass destruction and other destabilizing technologies that could fall into the hands of terrorists. Iran and Syria are of special concern for their direct, open, and prominent role in supporting Hizballah and Palestinian terrorist groups, for their unhelpful actions in Iraq, and Iran's unwillingness to bring to justice senior al-Qa'ida members it detained in 2003.

American noncombatants in Iraq and Afghanistan comprised most of the American victims of terrorism this year. These casualties occurred against a backdrop of US combat operations against terrorists and insurgents in both countries. Americans were also killed in terrorist incidents in Saudi Arabia, Egypt and Gaza.

The United States continued in 2004 to harden security of its official presence overseas and to step up travel advisories and warnings to American citizens to help them manage and weigh the risks associated with travel into areas in which terrorist threats may be elevated. The United States also continued to work with international and multilateral organizations to tighten security of seaports and airports and improve security of international travel. The United States will continue to broaden and deepen international cooperation to protect US citizens. The trend away from centralized planning of terrorist activities and towards inspiration of local groups to commit acts of terror makes even more crucial the need for deeper international cooperation to defeat emerging violent extremist groups. The United States and its partners must intensify current efforts to bolster the political will and the intelligence, law enforcement, financial, and military capabilities of partner nations to combat terrorism, on their own or with us. The United States will step up cooperation with its partners to prevent the spread of al-Qa'ida ideology and the growth of jihadist terror. The United States will also continue its efforts to defeat non-al-Qa'ida terrorist groups, discourage state sponsorship of terrorism, and mobilize international will and build capacity to prevent terrorist access to WMD. No single country can successfully deal with terrorism on its own, but together we will prevail.

More information on the US Counterterrorism Policy is available at http://www.state.gov/documents/organization/45317.pdf

GLOBAL JIHAD: EVOLVING AND ADAPTING

The global jihadist movement—including its most prominent component, al-Qa'ida—remains the preeminent terrorist threat to the United States, US interests and US allies. While the core of al-Qa'ida has suffered damage to its leadership, organization, and capabilities, the group remains intent on striking US interests in the homeland and overseas. During the past year, concerted antiterrorist coalition measures have degraded al-Qa'ida's central command infrastructure, decreasing its ability to conduct massive attacks. At the same time, however, al-Qa'ida has spread its anti-US, anti-Western ideology to other groups and geographical areas. It is therefore no longer only al-Qa'ida itself but increasingly groups affiliated with al-Qa'ida, or independent ones adhering to al-Qa'ida's ideology, that present the greatest threat of terrorist attacks against US and allied interests globally.

US and coalition successes against al-Qa'ida have forced these jihadist groups to compensate by showing a greater willingness to act on their own and exercising greater local control over their strategic and tactical decisions. As a result of this growing dispersion and local decision-making, there is an increasing commingling of groups, personnel, resources, and ad hoc operational and logistical coordination. These groups affiliated with al-Qa'ida or indoctrinated with al-Qa'ida's ideology are now carrying out most of the terrorist attacks against US and allied interests. Their decreased power projection and limited resources mean that an increasing percentage of jihadist attacks are more local, less sophisticated, but still lethal. Some groups, however, are seeking to replicate al-Qa'ida's global reach and expertise for mass casualty attacks. This trend underscores that America's partners in the global war on terror require the capabilities to identify and eliminate terrorist threats in their countries for their own security and ultimately to stop terrorists abroad before they can gain the ability to attack the US homeland.

Al-Qa'ida

Despite intensive US and partner operations that have led to the killing or capture of much of al-Qa'ida's senior leadership, Usama bin Ladin and his deputy, Ayman al-Zawahiri, remain at large. In late 2004, they made videotaped statements addressed directly to the US public that warned of more attacks. The two have also publicly threatened at least three dozen countries in Europe, Africa, the Middle East, and South Asia.

The apparent mergers or declarations of allegiance of groups such as Abu Mus'ab al-Zarqawi's organization with al-Qa'ida suggest that al-Qa'ida is looking to leverage the capabilities and resources of key regional networks and affiliates—a trend that al-Qa'ida could also use to try to support new attacks in the United States and abroad.

The Global Jihadist Movement

The global jihadist movement predates al-Qa'ida's founding and was reinforced and developed by successive conflicts in Afghanistan, Bosnia, Chechnya, and elsewhere during the 1990s. As a result, it spawned several groups and operating nodes and developed a resiliency that ensured that destruction of any one group or node did not destroy the larger movement. Since 2001, extremists, including members of al-Qa'ida and affiliated groups, have sought to exploit perceptions of the US-led global war on terrorism and, in particular, the war in Iraq to attract converts to their movement. Many of these recruits come from a large and growing pool of disaffected youth who are sympathetic to radical, anti-Western militant ideology. At the same time, these extremists have branched out to establish jihadist cells in other parts of the Middle East, South Asia, and Europe, from which they seek to prepare operations and facilitate funding and communications.

Foreign fighters appear to be working to make the insurgency in Iraq what Afghanistan was to the earlier generation of jihadists—a melting pot for jihadists from around the world, a training ground, and an indoctrination center. In the months and years ahead, a significant number of fighters who have traveled to Iraq could return to their home countries, exacerbating domestic conflicts or augmenting with new skills and experience existing extremist networks in the communities to which they return.

The Spread of Al-Qa'ida's Ideology

Al-Qa'ida's ideology resonates with other Sunni extremist circles. Some affiliated groups—including Jemaah Islamiyah in Southeast Asia—look to their own spiritual leaders, yet historically have shared close ideological and operational ties to al-Qa'ida. In recent years, however, the resonance of al-Qa'ida's message has contributed to the formation of an assortment of grassroots networks and cells among persons that previously have had no observable links to bin Ladin or al-Qa'ida aside from general ideological and religious affinity. Examples of this trend include Salafiya Jihadia, a loosely-organized Moroccan movement that carried out the bombings in May 2003 in Casablanca, and the terrorists who executed the March 2004 attack in Madrid. Although these cells do not appear to have been acting directly on al-Qa'ida orders, their attacks supported al-Qa'ida's ideology and reflected al-Qa'ida's targeting strategy.

Terrorist capabilities for attacks will remain uneven, given the varying degrees of expertise and increasing decentralization within the movement. Most groups will be capable only of relatively unsophisticated, but still deadly attacks. Others, however, may seek to acquire or replicate al-Qa'ida's expertise and material support for mass-casualty attacks. The explosive growth of media and the Internet, as well as the ease of travel and communication around the world have made possible the rapid movement of operatives, expertise, money, and explosives. Terrorists increasingly will use media and the Internet to advance key messages or rally support, share jihadist experiences and expertise, and spread fear.

Although the jihadist movement remains dangerous, it is not monolithic. Some groups are focused on attacking the United States or its allies, while others view governments and leaders in the Muslim world as their primary targets. The United States and its partners in the global war on terrorism will continue to use all means available to identify, target, and prevent the spread of these jihadist groups and ideology. More information on the elements of the al-Qa'ida ideology is available at http://www.state.gov/documents/organization/45318.pdf

BUILDING INTERNATIONAL WILL AND CAPACITY TO COUNTER TERRORISM

The Department of State engages diplomatically with foreign governments and in international and regional fora to accomplish the US Government's first priority—protecting Americans at home and abroad.

The Department of State's diplomatic efforts help build the political will and operational skills of foreign governments to combat terror. Many countries are committed allies in the global war on terrorism. Some, however, need training and resources to develop stronger institutions and capabilities. The Department of State's counterterrorism efforts are an essential component in the success of US military, law enforcement, intelligence, and financial activities in the global fight against terrorism.

Multilateral and regional organizations are also a key platform for developing broad international support for the adoption and implementation of policies, strategies, and "best practices" in combating terrorism and financing of terrorist activities. The Department of State works actively with foreign governments to urge adoption of all 12 international counterterrorism conventions, as well as adherence to and implementation of UNSCR 1373, which imposes binding obligations on all states to suppress and prevent terrorist financing, improve their border controls, enhance information sharing and law enforcement cooperation, suppress terrorist recruitment, and deny terrorists safe haven.

Antiterrorism Assistance Program

Congress authorized the Antiterrorism Assistance (ATA) Program in 1983 as part of a major initiative against international terrorism. Since that time, ATA has trained over 48,000 participants from 141 countries. The ATA Program provides training and related assistance to law enforcement and security services of selected partner nations. Assistance to qualified countries focuses on the following objectives:

Enhancing the antiterrorism skills of partner nations by providing training and equipment to deter and counter the threats of terrorism.
Strengthening the bilateral ties of the United States with partner nations by offering concrete assistance in areas of mutual concern.
Increasing respect for human rights by sharing with civilian authorities modern, humane, and effective antiterrorism techniques.

ATA courses are tailored to the requirements of individual partner nations and are developed in response to terrorism trends. The training can be categorized into four functional areas: Crisis Prevention, Crisis Management, Crisis Resolution, and Investigation. Countries needing assistance are identified on the basis of the threat or actual level of terrorist activity they face.

Antiterrorism assistance and training may be conducted either in-country or within the United States. This arrangement provides flexibility to maximize the effectiveness of the program for countries of strategic importance in the global war on terrorism.

ATA programs may take the form of advisory assistance, such as the impact of counterterrorism activities on police administration and management of police departments, how to teach counterterrorism tactics to police instructors or develop counterterrorism curriculum for a police academy, and modern interview and investigative techniques. This approach enables the program to provide a narrow focus to solutions for country-specific problems that are not resolved in the classroom training environment. Equipment or explosive-detection trained dogs may also be included in the assistance package.

The ability of the United States to assist partner nations to master the detection and prevention of terrorist activities will clearly enhance the mutual security of all the participating countries. Detecting and eliminating terrorist cells at the root before their violence can cross borders and oceans will ensure a safer world for all nations.

ATA continues its efforts to familiarize ambassadors, US Embassy regional security officers, and other US officials with the program offerings. The success of these efforts is evidenced by the fact that every frontline nation has requested antiterrorist assistance in some form. US diplomats report that the ability of the United States to offer immediate, specific, and intensive training, along with technical tools and equipment, has succeeded in breaking down barriers and building trust. More information concerning the success of ATA in 2004 can be found at http://www.state.gov/documents/organization/45319.pdf

Countering Terrorism on the Economic Front

Since the terrorist attacks of September 11, 2001, the US Government has acted to block funding of terrorists and their supporters and to promote international cooperation against them.

On September 23, 2001, the President signed Executive Order (EO) 13224, giving the United States Government (USG) a powerful tool to impede terrorist funding. In general terms, the EO provides a means to disrupt the financial-support network for terrorists and terrorist organizations by authorizing the US Government to designate and block the assets of foreign individuals and entities that commit, or pose a significant risk of committing, acts of terrorism. In addition, because of the pervasiveness and expansiveness of the financial foundations of foreign terrorists, the order authorizes the US Government to block the assets of individuals and entities that provide support, offer assistance to, or otherwise associate with designated terrorists and terrorist organizations. The EO also covers their subsidiaries, front organizations, agents, and associates.

The Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, continues to designate foreign terrorist organizations (FTOs) pursuant to Section 219 of the Immigration and Nationality Act, as amended. FTO designations play a critical role in the US fight against terrorism and are an effective means of curtailing support for terrorist activities and pressuring groups to get out of the terrorism business. Among other consequences of such a designation, it is unlawful for US persons or any persons subject to the jurisdiction of the United States to provide material support or resources to a designated FTO. US financial institutions are also required to freeze the funds of designated FTOs.

EO and FTO designations support US efforts to curb financing of terrorism and encourage other nations to do the same. They stigmatize and isolate designated terrorist entities and individuals internationally. They deter donations or contributions to, and economic transactions with, named entities and individuals. They heighten public awareness and knowledge of terrorist organizations and signal to other governments US concerns about named entities and individuals.

During 2004, the United States and other UN members designated a number of individuals and entities:

On January 16, the United States Government designated Sulaiman Jassem Sulaiman Abo Ghaith under EO 13224, and his name was added, at the request of the Kuwaiti Government, to the UNSCR 1267 Sanctions Committee's ("Sanctions Committee") consolidated list of individuals and entities with links to the Taliban, Usama bin Ladin, or al-Qa'ida the same day.
The USG designated the branch offices of the Saudi-based charity al-Haramain Islamic Foundation located in Indonesia, Kenya, Tanzania, and Pakistan on January 22 under EO 13224. At the request of the United States and Saudi Arabia, these entities were also listed by the Sanctions Committee on January 26.
The USG designated Shaykh 'Abd al-Majid al-Zindani under EO 13224 on February 24. At the request of the United States, he was also listed by the Sanctions Committee on February 27.
On March 15, Italy submitted 10 names to the UN 1267 Sanctions Committee, which listed them on March 17. The United States designated and froze the assets of these 10 individuals domestically on March 18.
On May 3, the Sanctions Committee listed four names submitted by Germany. The United States designated and froze the assets of these four individuals domestically on April 30.
On May 6, the USG designated al-Furqan, Taibah International (Bosnia), and al-Haramain & al-Masjed al-Aqsa Charity Foundation under Executive Order 13224. At the request of the United States, two of these al-Qa'ida-linked Bosnian charities were listed by the Sanctions Committee on May 11 and one on June 28.
On June 2, the USG designated the al-Haramain Islamic Foundation branch offices in Afghanistan, Albania, Bangladesh, Ethiopia, and the Netherlands under EO 13224. At the request of the United States and Saudi Arabia, these additional al-Haramain branches were listed by the Sanctions Committee on July 6.
The United States designated Hassan Abdullah Hersi al-Turki under EO 13224 on June 3. At the request of the United States, his name was listed by the Sanctions Committee on July 6.
On June 10, the United States designated Assad Ahmad Barakat and two businesses under EO 13224.
On June 23, the Sanctions Committee listed six names proposed by Italy, and the United States designated these six individuals under EO 13224.
On July 13, the USG designated the Continuity Irish Republican Army (CIRA) as a Foreign Terrorist Organization (FTO) and amended the Executive Order designation of CIRA to include two aliases: Continuity Army Council and Republican Sinn Fein. The USG had designated Continuity Irish Republican Army (CIRA) under EO 13224 on December 31, 2001.
On September 9, the United States designated al-Haramain Islamic Foundation branch offices in the United States (Ashland, Oregon and Springfield, Missouri) and a branch of the Foundation in the Comoros Islands under EO 13224. In addition, the director of the US branch of the al-Haramain Islamic Foundation, Suliman al-Buthe, was also designated. At the request of the United States, the additional al-Haramain branches and Suliman al-Buthe were listed by the UN 1267 Sanctions Committee on September 28.
On October 13, the United States designated the Islamic African Relief Agency (IARA), its offices world wide, and five of its senior officials (Dr. Mohammed Ibrahim Sulaiman, Jaffar Ahmad Abdullah Makki, Khalid Ahmad Jumah al-Sudani, Abdul Aziz Abbabakar Muhamad, and Ibrahim Buisir) under EO 13224.
On October 15, the United States designated Jama'at al-Tawhid wa'al-Jihad (JTJ) both as an FTO and separately under EO 13224. At the request of the United States, the United Kingdom, Jordan, and Iraq, this organization was also listed by the Sanctions Committee on October 18.
On November 30, the USG amended the previous designation of Jama'at al-Tawhid wa'al-Jihad (JTJ), to include its new alias Tanzim Qa'idat al-Jihad fi Bilad al-Rafidayn and all its possible translations. On December 2, Japan, joined by the United Kingdom and Germany, submitted the new alias Tanzim Qa'idat al-Jihad fi Bilad al-Rafidayn and all its possible translations and transliterations to the Sanctions Committee. The USG fully supported those efforts.

On December 17, the United States designated Khadafi Abubaker Janjalani, the leader of a major faction of the Abu Sayyaf Group, under EO 13224 and cosponsored the submission of Janjalani to the UN 1267 Sanctions Committee with the Governments of the Philippines and Australia.

On December 21, the United States designated Adel Abdul Jalil Batterjee and Saad Rashed Mohammad al-Faqih for providing material support to al-Qa'ida and Usama bin Ladin under EO 13224 and submitted both names to the UN 1267 Sanctions Committee; they were listed by the Committee on December 23.

As of December 31, 2004, the United States had designated under EO 13224 a total of 397 individuals and entities as terrorists, their financiers, or facilitators. Since September 11, 2001, the global community has frozen over $146 million in terrorist-related assets.

Throughout the year, the United States also continued to work closely with multilateral partners in numerous counterterrorist financing tracks, including the Counterterrorism Committee of the United Nations, the Egmont Group of Financial Intelligence Units, the Financial Action Task Force (FATF), and the Counterterrorism Assistance Group (CTAG), as well as in international financial institutions. In addition, in June the United States agreed with the European Union on a Declaration on Combating Terrorism that ratified a wide-ranging set of counterterrorism initiatives, including a commitment to establish a regular dialogue on terrorism finance between the European Union and the United States. Since it was launched in September 2004, the dialogue has served as the framework for ongoing exchanges to promote information-sharing and cooperation on FATF and on technical assistance issues.

More information on combating the threat of non-bank financing of terrorism can be found at http://www.state.gov/documents/organization/45319.pdf

Mutilateral and Regional Coorperation

Multilateral and regional organizations are crucial to building a seamless global counterterrorism web. Specialized multilateral organizations like the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) can set international counterterrorism standards and best practices. Regional groups around the world, including the European Union, the African Union, the Organization of American States and others, can, and do, encourage their member states to adopt these standards and best practices, and help in their implementation.

One example of how the United States is working with multilateral and regional organizations to improve counterterrorism capabilities involves different multilateral groups, each doing what it does best:

The G8 developed a set of guidelines and best practices to improve the security of travel documents, including the use of biometrics.
The ICAO reviewed these guidelines and best practices and agreed to adopt them as international standards.
The Organization for Security and Cooperation in Europe (OSCE) agreed in a Ministerial decision in December 2003 to a US-initiated proposal for all 55 OSCE member states to adopt and implement the ICAO standards.
The G8 Counterterrorism Action Group (CTAG), which coordinates members'counterterrorism programs and assistance to avoid duplication of effort, worked to coordinate donor assistance on document security needs in the OSCE region and beyond.

G8 actions in these areas can serve as a first step in further bolstering the security of travel. As with G8 document security and issuance standards, the next steps will be to export completed standards and practices to other organizations for broader adoption, and then to assist those lacking the means to implement them. More information on G8 actions can be found at http://www.state.gov/documents/organization/45319.pdf

Role of the United Nations in Fighting Terrorism

There are 12 universal conventions and protocols currently in force against terrorism that have been developed under the auspices of the United Nations and its specialized agencies and are open to participation by all member states. Various UN Security Council resolutions, including Resolution 1373, have called upon all member states to become parties to these international instruments. However, many states are not yet parties to all 12 instruments (and thus have not yet implemented them), while still other states have not fully implemented them despite becoming parties. (A thirteenth instrument, the Nuclear Terrorism Convention, was adopted by the UN General Assembly on April 13, 2005, and will be opened for signature in September 2005.)

These conventions and protocols were negotiated from 1963 to 1999. Most are penal in nature with a common format. Typically, they define a particular type of terrorist conduct as an offense under the convention, such as seizure of an aircraft in flight by threat or force; require state parties to penalize that activity in their domestic law; identify certain bases upon which the relevant state parties are required to establish jurisdiction over the defined offense, such as registration, territoriality, or nationality; and create an obligation on the state party in which an accused offender is found to establish jurisdiction over the offense and to refer the offense for prosecution if the party does not extradite pursuant to other provisions of the convention. This last element gives effect to the principle of "no safe haven for terrorists." UN Security Council Resolution 1373 particularly stresses this principle and obligates all states to "deny safe haven to those who finance, plan, support, or commit terrorist acts, or provide safe havens."

The 1991 Convention on the Marking of Plastic Explosives for the Purpose of Detection is regulatory in nature and contains no penal provisions. The 1963 Convention on Offenses and Certain Other Acts Committed on Board Aircraft requires a state party to establish penal jurisdiction over offenses committed on board its registered aircraft in flight, without requiring how those offenses should be defined.

More information on the 12 international counterterrorism conventions can be found at http://www.state.gov/documents/organization/45319.pdf

AFRICA

Overview

A small number of al-Qa'ida operatives in East Africa, particularly Somalia, continued to pose the most serious threat to American interests in the region. It is unclear to what extent terrorist groups are present in South Africa, however, the activity of al-Qa'ida and affiliated persons or groups in South Africa and Nigeria, home to Africa's largest Muslim population, is of growing concern. Hizballah continues to engage in fundraising activities in Africa, particularly in West Africa.

Though civil conflict and ethnic violence continued in a number of African countries in 2004, there were few significant international terrorist incidents in Africa during the year. An increase in anti-American and anti-Western rhetoric from a number of Islamic radicals is of growing concern. Many African governments improved their cooperation and strengthened their efforts in the war on terrorism. Both the African Union (AU) and other African regional organizations undertook initiatives to improve counterterrorism cooperation and information sharing.

In October, the Government of Chad helped negotiate the turnover of captured Salafist Group for Call and Combat (GSPC) factional leader Amari Saifi (aka Abderazak al-Para) from a Chadian rebel group to the Algerian Government. Chadian military forces had routed the GSPC element led by al-Para in northern Chad in March, and he was subsequently captured by the rebel group. Al-Para headed a GSPC faction responsible for the kidnapping of 32 European tourists in Algeria in the summer of 2003. Al-Para took the captives to Mali, where the government was instrumental in securing their release. Members of the GSPC continue to operate in the Sahel region, crossing difficult-to-patrol borders between Mali, Mauritania, Niger, Algeria and Chad. With the help of US-funded training, those countries have increasingly cooperated against the GSPC. At year's end, al-Para was in Algerian custody.

Sahel countries Mauritania, Mali, Niger, and Chad are devoting more resources to improve their counterterrorism capabilities. These countries also participate in the US-sponsored Pan-Sahel Initiative (PSI), a program designed to assist those nations in protecting their borders, combating terrorism, and enhancing regional stability. Components of the program are intended to encourage the participating countries to cooperate with each other against smuggling and trafficking in persons, as well as in the sharing of information. The State Department funded and currently supervises the program, which has included providing equipment and training by US European Command (EUCOM) trainers to Sahel country military units. The United States has also provided counterterrorism training for senior police and other officials from eastern and southern Africa at the International Law Enforcement Academy in Gaborone, Botswana. A continuation of the PSI program, called the Trans Sahara Counterterrorism Initiative, is now under consideration.

Many African nations have taken cooperative action against terrorism, including making real efforts to sign and ratify the 12 international conventions and protocols relating to terrorism. Botswana, Burkina Faso, Ghana, Kenya, Madagascar, Mali, Niger, the Seychelles, and Sudan have signed all 12 protocols. In October, the African Union (AU) opened the new African Center for Study and Research on Terrorism in Algiers. Several nations have formed national counterterrorism centers, including Nigeria, Kenya, and South Africa.

Information on the US East African Counterterrorism Initiate (EACTI) can be found at http://www.state.gov/documents/organization/45321.pdf

Djibouti

Djibouti has taken a strong stand against international terrorist organizations and individuals. Djibouti hosts the only US military base in Sub-Saharan Africa, the Combined Joint Task Force-Horn of Africa, as well as Combined Task Force 150 which operates offshore and is headquartered in Bahrain.

The Djiboutian Government has increased its efforts to train security forces, secure borders, and expand its capacity for maritime interdiction. Djibouti also joined the ranks of countries participating in the US Government's Safe Skies for Africa program in late 2004. Through this program, Djibouti is scheduled to receive assistance to improve its airport security and infrastructure. The Government has also closed down terrorist-linked financial institutions and shared information on possible terrorist activity in the region. The counterterrorism committee under President Guelleh moved to enhance coordination and action on information concerning terrorist organizations.

Ethiopia

Ethiopia's support in the global war on terrorism has been consistently solid and unwavering. The Government of Ethiopia has conducted investigations regarding regional rebel and possibly transnational terrorist threats to Westerners and US military officials in the Ogaden region of Ethiopia. Ethiopia has also been cooperative in sharing information with the United States on terrorist activities. To counter the threat from these groups and from elements of the Somalia-based Al-Ittihad al-Islami (AIAI), Ethiopia has undertaken increased military efforts to control its lengthy and porous border with Somalia. Its draft penal code includes provisions that criminalize terrorism, money-laundering, and providing financial support for terrorism. The Government also has developed and installed new security systems for Addis Ababa's international airport that allow the tracking of terrorists and terrorist supporters, and introduced a new, more secure passport that includes anti-tampering features.

Kenya

Kenya remains an active and critical partner in the war on terrorism. The Government established the National Counter Terrorism Center in January 2004 as well as the National Security Advisory Committee to oversee its operations. However, Kenya registered only slow progress towards the overall strengthening of its capabilities to combat terrorism, prosecute terror suspects, or respond to emergency situations. In April 2003, Kenya published a draft "Suppression of Terrorism" bill, but withdrew it in 2004 due to broad human rights concerns. At year's end, the Kenyan Government had not submitted to parliament a revised draft to address these concerns.

The Kenyan Government has taken the initiative in arresting terrorist suspects and disrupting terrorist operations. The trials of seven terror suspects—arrested in November 2003 on charges related to the Kikambala hotel bombing and attempted shoot-down of an Israeli airliner in November 2002, the 1998 Embassy bombings and a subsequent plot to attack the US Embassy in 2003—continued but were not concluded by year's end. Kenya made many security improvements at airports and hotels in 2004, particularly in Mombasa. The Government's uncoordinated response to an explosion at Nairobi's Wilson Airport in October, however, indicates the need for better coordination and continued improvement of security measures.

Nigeria

In 2004, Nigeria remained committed to the global war against terrorism and has stepped up diplomatic efforts in both global and regional forums concerning counterterrorism issues. Nigerian President Olusegun Obasanjo and other African heads of state founded the New Partnership for African Development—geared toward sustainable development in Africa—that has helped African countries combat terrorism. Nigeria initiated and sponsored the first-ever regional conference of security and intelligence service chiefs during 2004 under the auspices of the Economic Community of West African States (ECOWAS). A central theme during this conference was the need to share information and cooperate more fully on a host of transnational issues, particularly terrorism. This effort was followed by an African Union conference, chaired by President Obasanjo, which specifically addressed the need for broader cooperation within the intelligence and security service communities of AU member countries on the issue of terrorism.

Nigeria has participated actively in international efforts to track and freeze terrorists'assets. However, Nigeria's relatively large and complex banking sector, combined with widespread corruption, makes combating terrorism financing more difficult. There are growing concerns about the rise of radical Islam in Nigeria—home of Africa's largest Muslim population. Links were also uncovered connecting Nigerians to al-Qa'ida in 2004.

In late December 2003, early January and again in September 2004, a group calling itself the "Taleban" raided police stations in the northeastern states of Yobe and Borno, reportedly taking several police officers hostage, stealing weapons, and killing at least seven civilians. Nigerian security services quickly responded to both attacks and claim to have killed or captured dozens of the "Taleban" members in the aftermath of the attacks.

Rwanda

The Rwandan Government has continued to give full support to international efforts to combat terrorism. The Government has been responsive on efforts to combat terrorism financing and has increased its border control measures to identify potential terrorists. Rwanda established an intergovernmental counterterrorism committee and has an antiterrorism section in its police intelligence unit. Despite lack of training and resources, Rwanda's Central Bank and Ministry of Finance officials have provided outstanding cooperation on terrorist financing issues. Rwanda has participated in regional initiatives on international counterterrorism cooperation with other African countries.

During 2004, the Democratic Forces for the Liberation of Rwanda (FDLR), known as the Army for the Liberation of Rwanda (ALIR) until 2001, an armed rebel force including former soldiers and supporters of the previous government that orchestrated the genocide in 1994, continued to operate in Rwanda and the Democratic Republic of the Congo. Rwanda continues to pursue the rebels. An ALIR unit was responsible for the kidnapping and murder of nine persons, including two US tourists, in Bwindi Park in 1999. In 2004, the Rwandan Government assisted US law enforcement officials seeking to prosecute three suspects in the attack who were transferred to the United States for prosecution in 2003. At year's end, the suspects were in US custody awaiting trial.

Somalia

Somalia's lack of a functioning central government, protracted state of violent instability, long unguarded coastline, porous borders, and proximity to the Arabian Peninsula make it a potential location for international terrorists seeking a transit or launching point to conduct operations elsewhere. Regional efforts to bring about a national reconciliation and establish peace and stability in Somalia are ongoing. Although the ability of Somali local and regional authorities to carry out counterterrorism activities is constrained, some have taken limited actions in this direction.

Members of the Somalia-based al-Ittihad al-Islami (AIAI) have committed terrorist acts in the past, primarily in Ethiopia. AIAI rose to power in the early 1990s with a goal of creating an Islamic state in Somalia. In recent years, AIAI has become highly factionalized and diffuse, and its membership is difficult to define. Some elements of AIAI continue to pose a threat to countries in the region, other factions may be targeting Western interests in the region, while still other elements are concerned with humanitarian issues. Some members are sympathetic to and maintain ties with al-Qa'ida.

South Africa

South Africa publicly supports global efforts against terrorism and has shared financial, law enforcement, and intelligence information with the United States. South Africa took several strong steps forward in combating terror in 2004, particularly in the legislative arena. The South African Parliament in November adopted the thorough "Protection of Constitutional Democracy Against Terrorist and Related Activities Bill," which has been sent to the President's office for signature into law. The act clearly defines terrorism and specifically criminalizes terrorist activities in application of its international obligations. It prescribes prison sentences of up to 15 years or large fines for those convicted.

Two South Africans were arrested in Pakistan in July as part of the Pakistani Government's efforts against al-Qa'ida. South African officials were satisfied they were not planning to conduct attacks in South Africa. This incident, however, brought to international attention the possibility of South Africans participating in terrorist activities. Some weaknesses of the South African passport were identified, and the Home Affairs Department is taking initial steps to improve the security of both the passport and national identity document.

The South African Government in March organized a four-week multinational Anti-Terrorism Training Program in Pretoria, which brought together police from South Africa and eleven other African countries to teach methods for combating terrorism. In early October, the Government released a report on the first full year's activities of the Financial Intelligence Unit. The Unit received almost 7,500 reports of suspicious financial transactions. Though the quality of the reports was uneven, this is expected to improve during the Unit's next year of operation. Also in October, the Government announced the establishment of an anti-terrorism "nerve center," to bring together several police and intelligence agencies. A specialized rapid response anti-terrorism unit also is planned for the future.

Tanzania

Tanzania continues to be a supportive partner in the global war on terrorism. It has cooperated on several multi-year programs to build law enforcement capacity, enhance border security, improve civil aviation security, and combat money laundering and terrorist finance. It also hosts the East and Southern Africa Anti-Money Laundering Group (ESAAMLG), an international group whose aim is to develop a comprehensive anti-money laundering regime on a regional scale.

Tanzanian and US authorities established a close working relationship after the bombing in 1998 of the US Embassy in Dar Es Salaam and have cooperated in bringing bombing suspects to trial in New York and Dar Es Salaam. Rashid Sweleh Hemed, on trial in Tanzania in late 2003 for his role in the 1998 Embassy attacks, was acquitted in late December by the High Court following the government's appeal of his initial acquittal earlier in the year. A Tanzanian suspected of involvement in the 1998 bombing, Ahmed Khalfan Ghailani, was arrested in July in Pakistan. Although cooperative, Tanzanian law enforcement authorities still have a limited capacity to investigate terrorist suspects and bring them to justice. A comprehensive Prevention of Terrorism Act, approved in late 2002, has yet to be enforced, and implementing regulations for the law have not been drafted.

Uganda

Uganda continued its firm stance against local and international terrorism. Uganda enacted the Anti-Terrorism Act in 2002, which provides a legal basis for bringing suspected terrorists to court and freezing assets of certain terrorist entities.

The Government of Uganda has fought the Lord's Resistance Army (LRA) since the 1980s. This group has carried out acts of extreme brutality against innocent civilians (kidnapping children for use as soldiers and sex slaves) and operates in northern and eastern Uganda and southern Sudan. In February, the LRA attacked the Barlonyo refugee camp near Lira, Uganda, killing nearly 200 people. In previous years, the LRA received assistance from the Government of Sudan. During 2004, the Sudanese Government cooperated with the Ugandan Government to cut off supplies to the LRA, and to allow the Ugandan military to operate on Sudanese territory. The Ugandan Government inflicted severe setbacks to the LRA. It also continued an amnesty program for senior LRA combatants, many of whom opted to come out of the bush and accept the offer. In an attempt to hold a direct dialogue with the LRA, the Government announced a limited ceasefire in mid-November and extended it through December 31, 2004. At year's end, however, no peace had been agreed, and fighting resumed on January 1, 2005, when the LRA ambushed a government vehicle.

EAST ASIA AND PACIFIC

Overview

East Asian countries made significant progress in 2004 in preventing terrorist attacks and creating an international environment inhospitable to terrorists. Despite this progress, Southeast Asia continues to be an attractive theater of operations for terrorist groups such as Jemaah Islamiya (JI) and the Abu Sayyaf Group (ASG). The region faced continuing terrorist threats on several fronts, and in 2004 several terrorist assaults occurred. In February, the Philippines suffered the worst terrorist attack in its history when a bomb planted by the ASG sunk SuperFerry 14, killing approximately 130 passengers. In September, a car bomb was detonated in front of the Australian Embassy in Indonesia, reportedly killing 10 and wounding nearly 200. JI claimed responsibility for the attack.

Because terrorism in Asia is a transnational problem, capacity building in a regional context has emerged as a priority alongside national capacity building efforts. In an important development, centers like the Southeast Asia Regional Center for Counterterrorism (SEARCCT) in Malaysia and the US-Thailand International Law Enforcement Academy (ILEA) in Bangkok expanded their activities to provide counterterrorism training to law enforcement officers throughout the region. Likewise, the Australian-Indonesian Jakarta Center for Law Enforcement Cooperation (JCLEC) is a promising additional regional center for capacity building. Multilateral fora, including the United Nations Security Council's Counterterrorism Committee (UNCTC), G8's Roma-Lyon and Counterterrorism Action Groups (CTAG), Asia-Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN) and the ASEAN Regional Forum (ARF), also emerged as important organizations for regional and transnational counterterrorism cooperation.

Australia deserves special recognition for its continuing robust counterterrorism posture in 2004, as the Government undertook strong measures not only to improve domestic counterterrorism capacities, but also to strengthen cooperation and capabilities throughout the region. Japan also made valuable contributions to regional counterterrorism capacity building efforts.

Measures to strengthen law enforcement efforts supportive of the global war on terror accelerated in 2004, and several economies in the region developed new institutions to address gaps in their current counterterrorism efforts. The People's Bank of China established an anti-money laundering bureau, which created a terrorist finance investigative unit, and in November Beijing joined the Eurasia Group, a regional anti-money laundering group. In the Philippines, President Arroyo created a multi-agency Anti-Terrorism Task Force (ATTF), which captured over 60 suspected terrorists in its first five months of existence. New Zealand further enhanced its capacity by allocating funds for the creation of National Security Teams specially designated to combat terrorism. Taiwan authorities announced the creation of a counterterrorism policy committee chaired by the Premier of the Executive Yuan and composed of seven multi-agency task forces.

Several countries achieved successes in bringing terrorists to justice, as the fight against terrorism in East Asia matured to move beyond arrests towards prosecutions. The Indonesian police arrested approximately two dozen terrorist suspects, including suspected senior JI leaders, former instructors at JI training camps, financiers of attacks, and members of splinter networks who joined with JI to carry out attacks. When JI Emir Abu Bakar Ba'asyir completed a sentence for document fraud and immigration violations, Indonesian police rearrested and charged him with conspiracy to commit terrorist acts, linking him to the Bali and Jakarta Marriott bombings as well as to a cache of arms and explosives found in central Java. Ba'asyir's trial on these charges was underway at year's end. Following up on 2003 arrests for channeling terrorist money into Cambodia through the Umm al-Qura Islamic school, a Cambodian court convicted three suspects of supporting JI and sentenced them to life imprisonment. The Philippines arrested numerous ASG members, including a senior ASG leader wanted by the United States for his role in the kidnappings of Americans in 2001, and a Philippines court sentenced 17 ASG members to death, although four were convicted in absentia after having escaped from jail. Lack of specific anti-terrorism legislation continues to be a challenge to comprehensive law enforcement efforts in several countries in the region.

Although governments in Southeast Asia made progress in the fight against terrorism in 2004, they face tremendous challenges as they continue to deal with the terrorist threat. Separatist insurgencies, currently ongoing in the Philippines, Indonesia, and southern Thailand, also contribute to an environment of lawlessness, which terrorist groups may attempt to exploit for their own purposes.

More information on Asia-Pacific counterterrorism initiatives can be found at http://www.state.gov/documents/organization/45321.pdf

Australia

Australia maintained its robust support for domestic and international counterterrorism efforts in 2004, adding to already significant commitments of personnel and resources. Demonstrating a clearer appreciation than most for the scope and nature of the terrorist threat, the Australian Government worked to advance practical proposals for regional cooperation to deter attacks, disrupt terrorist cells, mitigate the effects of any attacks that did occur, and bring terrorists and their supporters to justice. In 2004, Australia committed significant resources to strengthen its own national security capabilities in areas such as intelligence collection, protective security, and border protection. In May, the National Threat Assessment Center located within the Australian Security Intelligence Organization (ASIO) began operating 24 hours a day, seven days a week. The Australian Transaction Reports and Analysis Center also assisted regional financial intelligence units by building investigation skills and by helping officers throughout the region detect patterns of financial transactions that could be used in terrorist financing.

The Australian Government also introduced legislation to give ASIO new powers to fight terrorism. By the close of 2004, Australia had designated 17 groups as terrorist organizations under legislation creating offenses for membership in, or other specified links to, such groups. Australia also extended measures to freeze terrorist assets of an additional 55 individuals and entities pursuant to Australia's obligations under UN Security Council Resolutions 1267 and 1390 (and their successor resolutions) and 1373.

The Australian Government conducted a national review of the regulations, reporting requirements, and security for the storage, sale, and handling of hazardous materials, with ammonium nitrate a particular priority because of its ready availability and history of terrorist use. The Council of Australian Governments agreed to ban access to ammonium nitrate for other than specifically authorized users. The agreement mandated establishing in each state a licensing regime for the use, manufacture, storage, transport, supply, import, and export of ammonium nitrate.

The Australian Ambassador for Counterterrorism continued to serve as a focal point for coordinating, promoting, and intensifying Australia's international counterterrorism efforts throughout 2004. In continuation of a major diplomatic initiative, Australia broadened its network of bilateral counterterrorism arrangements in Southeast Asia. By the end of 2004, the Australian Government had signed nine bilateral memoranda of understanding (MOUs) on cooperation to combat international terrorism with Indonesia, Malaysia, Thailand, Papua New Guinea, the Philippines, Fiji, Cambodia, East Timor, and India.

Australia launched a number of multi-year plans to help countries in the Asia-Pacific region build capacity to combat terrorism in areas such as law enforcement, border management, transportation security, intelligence, anti-terrorist financing, and the development of legal regimes. Australia's support for the Jakarta Center for Law Enforcement Cooperation (JCLEC) in Semarang, Indonesia is a particularly noteworthy development, as JCLEC will serve as a counterterrorism training resource for regional law enforcement agencies. Australia also funded the establishment in 2004 of the Transnational Crime Center (TNCC) in Jakarta, which will provide a focal point within the Indonesian police for prevention, identification and dismantling all forms of transnational crime, including terrorism.

In February, Australia and Indonesia convened a regional meeting of Justice and Interior ministers to strengthen law enforcement efforts on counterterrorism information sharing and cooperative legal frameworks. Australian law enforcement agencies continued to build working-level relationships with their regional counterparts in 2004. The Australians also provided legal drafting assistance to Pacific Island Forum (PIF) states seeking to adopt UN conventions against terrorism and to bring their domestic laws into conformity with the conventions.

In partnership with the United States, Australia played a leading role in continuing development of a Regional Movement Alert List (RMAL) system. A fully functional RMAL should strengthen the ability of participating countries to fight terrorism by monitoring the movement of people across borders. Following completion of a feasibility study undertaken by Australia and the United States, APEC ministers agreed in November to pilot the RMAL in 2005.

Cambodia

Despite legislative and investigative limitations, Cambodia took several important measures to counter the threat of terrorism. On March 31, 2004, Cambodia, with the assistance of the United States, destroyed its entire stock of man-portable air defense systems (MANPADS) in part to ensure these weapons would never fall into the hands of terrorists.

In April, a bomb detonated at a ferry in the southwestern town of Koh Kong, slightly injuring several people. Five persons allegedly belonging to the Cambodian Freedom Fighters (CFF), an anti-government group, were subsequently arrested. Cambodian authorities had previously arrested seven members of the CFF in November 2003 for allegedly planning a terrorist attack in Koh Kong. However, in October 2004 the court dropped all charges in these cases. Some of the accused claimed they were coerced into confessions.

In December, a Cambodian court convicted three suspects (one Cambodian and two Thai) of supporting Jemaah Islamiya (JI), sentencing them to mandatory life imprisonment. The court acquitted an Egyptian defendant. The case began in May 2003 when the four were arrested by Cambodian authorities for using an Islamic school run by the Saudi Arabia-based non-government organization (NGO) Umm al-Qura as a front for channeling terrorist money into Cambodia from Saudi Arabia. In addition to the arrests of the four, the Government shut down two branches of the Umm al-Qura Islamic School and deported 28 foreign teachers and their dependents. During the trial, the court also convicted in absentia JI operations chief Hambali and two others of attempted murder for terrorist purposes. According to evidence presented in court, Hambali and the others convicted were involved in the planning of terrorist attacks on the US and UK embassies in Phnom Penh.

The Cambodian Government's ability to investigate potential terrorist activities is limited by a lack of training and resources, and it has requested international assistance to upgrade its law enforcement/security capabilities, particularly in border security. The Government has installed with US assistance computerized border control systems at Cambodia's international airports in Phnom Penh and Siem Reap, and land border crossing points at Poipet and Koh Kong. The Cambodian Government has also cooperated fully with US requests to monitor terrorists and terrorist entities listed as supporters of terrorist financing.

China

China continues to take a clear stand against international terrorism and is broadly supportive of the global war on terror. China holds regular counterterrorism consultations with the United States, and is supportive of international efforts to block and freeze terrorist assets. The Chinese Government treats designations of terrorists under US Executive Order 13224 on an equal basis with those designated by the United Nations UNSCR 1267 Sanctions Committee. In 2004, the Bank of China established a financial intelligence unit (FIU) to track suspicious transactions. China joined with Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Russia to form the Eurasia Group, a newly created regional anti-money laundering organization or Financial Action Task Force-style regional body, and is in the process of becoming an observer in the Financial Action Task Force (FATF).

In 2004, China agreed to grant permanent status to the FBI Legal Attaché Office in Beijing, thus providing for long-term stability and expansion of US-Chinese law enforcement and counterterrorism cooperation. Although US authorities have sought more timely Chinese responses to terrorist investigation requests, substantive intelligence has been exchanged in some cases. Lack of training and counterterrorism expertise remains an issue for Chinese law enforcement officials, but some received training in combating terrorist financing at the International Law Enforcement Academy in Thailand in 2004. While no acts of international terrorism were committed in China in 2004, there were several reports of bombings and bomb threats in various parts of China. It is unclear whether these were acts of terrorism or criminal attacks. Chinese authorities assert that ethnic Uighur terrorists, primarily based in Xinjiang Uighur Autonomous Region, continue to operate on Chinese territory.

Indonesia

In 2004, Indonesia continued building on its successes combating terrorism, but the bombing of the Australian Embassy in Jakarta in September that killed 10 demonstrates the continued threat posed by terrorists operating in Indonesia. The Indonesian National Police continued to take effective steps to counter the threat posed by the regional terrorist network Jemaah Islamiya (JI). Indonesian police arrested approximately two dozen terrorist suspects in 2004. Those arrested or convicted in 2004 include suspected senior JI leaders, former instructors at JI training camps, financiers of attacks, and members of splinter networks who joined with JI to carry out attacks. Since the October 2002 Bali bombings, Indonesian prosecutors and courts have convicted more than 100 members of JI or affiliated groups on terrorism charges.

Indonesian prosecutors and courts became a focal point of counterterrorism efforts in 2004, as more than 45 JI members stood trial on terrorism charges in Jakarta, Central Sulawesi, and Sumatra. As in previous years, the Government continued to mount effective prosecutions and the courts continued to convict those arrested in cases such as the Marriott bombing, although prosecution cases could have been strengthened in many instances. Additionally, prosecutors have begun levying terrorism charges against suspects involved in sectarian violence in Maluku and Central Sulawesi.

In September 2003, the Indonesian Supreme Court found suspected JI Emir Abu Bakar Ba'asyir guilty of document fraud and immigration violations, but exonerated him on charges of leading and participating in treasonous acts, accepting defense arguments that prosecutors had shown no connection between Ba'asyir and JI. A Supreme Court decision in January 2004 reduced his sentence from three years to 18 months. As Ba'asyir completed that sentence in April 2004, Indonesian police rearrested him and charged him with conspiracy to commit terrorist acts, linking him to the Bali and Marriott bombings as well as to a cache of arms and explosives found in central Java. His trial began in October 2004 and was ongoing at year's end.

In July, the Constitutional Court struck down the retroactive application of the 2003 Anti-Terror Law, passed after the Bali attack. In a divided decision, the Court ruled that the Bali bombings did not constitute an extraordinary crime. Both the Constitutional Court and Supreme Court officials said publicly the ruling would not affect Bali bombing cases already adjudicated. At the time of writing, no sentences of those convicted of Bali-related charges have been appealed based on the Constitutional Court ruling.

In October, an Indonesian court convicted and sentenced Rusman "Gun Gun" Gunawan, an Indonesian connected to the bombing of the J.W. Marriott hotel in Jakarta, to four years in prison for his role in helping facilitate the transfer of funds for that attack.

The South Jakarta District Court handed down an important verdict in November when it found JI member Mohammad Qital guilty under corporate criminal liability provisions of the Anti-Terror Law. In its decision, the court officially recognized the existence of JI and acknowledged that it engaged in terrorist actions. The court then found Qital guilty of terrorist activities through his duties as a JI member. However, at year's end, JI was not a banned organization in Indonesia. The Government has also established and is implementing an interagency process for responding to UN 1267 Sanctions Committee designations. The Government of Indonesia notified the UN Resolution 1373 Committee that it has frozen 18 accounts, but the details of those freeze orders are unclear.

By year's end, newly-elected President Yudhoyono had identified the capture of fugitive JI bomb-makers Noordin Mohammad Top and Azahari Hussein as a top priority. The Indonesian Government demonstrated commitment to regional leadership in counterterrorism efforts by working with the Australians to establish the Jakarta Center for Law Enforcement Cooperation (JCLEC), which will develop into a regional counterterrorism training institute.

Japan

Japan continued its strong counterterrorism stance, both domestically and abroad, in 2004. In May, the Diet ratified a mutual legal assistance treaty with the United States. The treaty will make cooperation in investigations and prosecution of terrorists easier.

Japan is active regionally in building counterterrorism cooperation and capacity among Asian countries. In June, Japan announced its APEC Counterterrorism Capacity Building Initiative and its plans to provide assistance to address aviation, port, and maritime security, as well as terrorism financing shortfalls in the region. The Japanese Coast Guard invited students from Southeast Asian countries to study at its academy, provided training for maritime law enforcement activities, and conducted a human resource development project to modernize and further professionalize the Philippine Coast Guard. Japanese officials have led regional seminars on terrorist finance, customs cooperation, law enforcement, immigration control, and export control. To help stem the flow of terrorist financing to al-Qa'ida and the Taliban, Japan designated under its asset-freezing program all entities and individuals included on the UN 1267 Sanctions Committee's consolidated list and sponsored an experts seminar on establishing financial intelligence units for Southeast Asian countries in December 2004.

There were no serious incidents of international or domestic terrorism in Japan during 2004. The leader of Aum Shinrikyo, a US-designated foreign terrorist organization accused of perpetrating the sarin gas attack on the Tokyo subway system in 1995, was sentenced to death in February. Appeals are pending. The Public Security Intelligence Agency is continuing its surveillance of the group through 2005, as authorized by the Public Security Commission in December 2002.

Laos

Laos has continued to support the global war on terrorism, but lacks specific counterterrorism laws. The Office of the Prosecutor General is drafting amendments to existing criminal law, under which acts of terrorism fall, to make more explicit the descriptions of and punishments for terrorism-related crimes. Efforts to implement the counterterrorism provisions of multilateral agreements are hampered by weak enforcement procedures and inefficiency of security organizations. The Government cooperated bilaterally on counterterrorism issues with the United States and other nations, and multilaterally with the United Nations and the Association of Southeast Asian Nations (ASEAN).

Laos suffered a handful of incidents of domestic terrorism in 2004, carried out by groups opposed to the Lao Government. A group calling itself the Free Democratic People's Government of Laos claimed credit for several small bombings, which resulted in one death and a number of injuries. This group also claimed responsibility for several explosions in Vientiane designed to disrupt the ASEAN Summit in late November 2004.

Malaysia

The Malaysian Government continues to be a strong partner in the war on terrorism, taking on a leading role to facilitate regional cooperation, most notably through its Southeast Asia Regional Center for Counter Terrorism (SEARCCT). Malaysia has detained more than 100 suspected terrorists under the Internal Security Act (ISA) since May 2001. According to the Internal Security Ministry, 87 such suspects remained in custody. Malaysia issued eight and renewed 32 two-year detention orders for terrorist suspects in 2004. Five detained terrorist suspects were granted conditional release in 2004.

The SEARCCT, established in 2003, focused primarily on training for regional authorities in law enforcement, banking, and other sectors. US trainers conducted courses for officials throughout the region at SEARCCT, and Malaysian, Japanese, Australian, South Korean, British, Croatian, and Canadian trainers also participated in regional counterterrorism courses, seminars, lectures, and workshops.

The Malaysian Government has worked to ensure that separatist violence in southern Thailand, which has wounded Malaysian tourists, does not spill over into Malaysia. Malaysia has strengthened border controls along the frontier between the two countries.

New Zealand

New Zealand has a strong capacity to develop and implement counterterrorism policies, and further strengthened its role in the global war on terror in 2004 through domestic legislation and regional involvement. In May, New Zealand hosted a counterterrorism meeting for Pacific Island Forum members. The meeting, which was funded through the Government's Pacific Island Security Fund, discussed the region's counterterrorism obligations and the range of international assistance available to help Pacific Island nations meet these requirements. In December, the Government introduced a bill into Parliament to extend until 2007 New Zealand's UN Security Council-related designations of terrorist organizations. By year's end, New Zealand had designated 420 terrorist organizations and was considering adding more to the list. In its 2004 budget, New Zealand allocated funds for the creation of specially-dedicated National Security Teams to combat terrorism.

Philippines

The Philippines continues to cooperate on a range of bilateral and multilateral counterterrorism efforts. Indigenous terrorist groups, as well as operatives of Jemaah Islamiya, continue to threaten the security of the country. The Philippines suffered the worst terrorist attack in its history when a bomb planted by Abu Sayyaf Group (ASG) terrorists sunk SuperFerry 14 in Manila Bay, killing approximately 130 passengers. In December, a bomb exploded in a crowded market in General Santos City, Mindanao, killing a reported 17 people. No group claimed responsibility for the attack.

Philippine authorities had a number of successes against terrorists in 2004. In March, they arrested seven ASG members responsible for the SuperFerry bombing and uncovered their plans to bomb the US Embassy, shopping malls, and other targets in Metro Manila. In April, a Philippine military unit killed six ASG members on Basilan Island, including Hamsiraji Sali, a senior ASG leader wanted by the United States for his role in the kidnappings of Americans Guillermo Sobero and Gracia and Martin Burnham and Sobero's and Martin Burnham's subsequent deaths. One of the three US-trained Light Reaction Companies bloodlessly apprehended two New People's Army (NPA) commanders in June, and an August air strike against the Pentagon Gang destroyed its leadership and virtually eliminated it as an organization. A court in August sentenced 17 ASG members to death, although four were convicted in absentia after having escaped from jail. In October, authorities arrested two men and one woman for their roles in bomb attacks at the Davao airport and ferry port.

President Gloria Macapagal-Arroyo announced the creation of a multi-agency Anti-Terrorism Task Force (ATTF) in March. During the first five months of its existence, ATTF operatives, backed up by law enforcement, captured over 60 suspected terrorists, seven of them foreigners believed to be elements of al-Qa'ida and JI.

The Philippines has made progress in tracking, blocking, and seizing terrorist assets. The main body tasked with investigating terrorist finance cases—the Anti-Money Laundering Council (AMLC)—completed the first phase of its information technology upgrades in 2004. The arrests in May and September, respectively, of ASG suspects Khair Mundus and Satrap Tilao on the first-ever money laundering charges against terrorists grew out of an investigation initiated by the US Department of Homeland Security (DHS) in coordination with Philippine officials. On December 17, the Philippines agreed to co-sponsor, with the United States, the submission of ASG leader Khadaffy Janjalani for inclusion on the United Nations 1267 Sanctions Committee list.

Major evidentiary and procedural obstacles in the Philippines, such as the absence of a law defining and codifying terrorist acts and restrictions on gathering of evidence, hinder the building of effective terrorism cases. Although several new counterterrorism bills were introduced in the new session of Congress in July, the Philippines failed to enact new antiterrorism legislation in 2004. Generic problems in the law enforcement and criminal justice systems also hamper bringing terrorists to justice. Among them are corruption, low morale, inadequate salaries, recruitment and retention difficulties, and lack of effective cooperation between police and prosecutors.

US and Philippine authorities worked closely during 2004 to energize rewards programs targeting terrorist groups. Using its Rewards Program, the US Department of Defense made two payments of $15,000 and $9,800 to Filipino informants for their roles in the capture of ASG cell leaders Galib Andang (aka "Commander Robot") and Alhamzer Limbong (aka "Kumander Kosovo"). The US Department of State, through its Rewards for Justice program, made a payment of __BODY__ million to the three Philippine informants who played a crucial role in the attempted capture of Hamsiraji Sali, during which Sali was killed.

Singapore

Singapore continued its strong opposition to terrorism and worked vigorously to advance the counterterrorism agenda in bilateral and multilateral contexts. While there were no acts of international or domestic terrorism in Singapore in 2004, Singaporean authorities pressed their investigation of the regional terrorist group Jemaah Islamiya (JI), and continued to detain JI members who plotted to carry out attacks in Singapore in the past.

Over the course of the year, the number of terrorismrelated detainees held under the Internal Security Act decreased from 37 to 35. Detainees include members of JI and two members of the Moro Islamic Liberation Front (MILF). The "Restriction Orders" authorizing detention require these persons to undergo a program of religious counseling with a group of volunteer religious counselors.

During 2004, Singapore continued its intelligence and law enforcement cooperation with a variety of governments, including the United States, to investigate terrorist groups, especially JI. Singapore provided information to Indonesia to assist in the second trial of Abu Bakar Ba'asyir. It has requested that Indonesia extradite to Singapore several JI members to face trial for engaging in a conspiracy to commit terrorist acts.

In 2004, authorities updated the Monetary Authority of Singapore Act (Anti-Terrorism Measures) and the United Nations Act (Anti-Terrorism Measures). These regulations prohibit the provision of any funds or other assistance to terrorists, and provide the authority for the seizure of financial or other assets.

Singaporean officials have taken strong measures to enhance maritime security in nearby waters, especially the Strait of Malacca. These measures are focused on addressing terrorist threats as well as piracy and other criminal attacks. The Maritime and Port Authority (MPA) of Singapore issued new security control measures on ships calling at the Port of Singapore, including pre-arrival notification requirements. In July, the navies of Singapore, Indonesia, and Malaysia initiated coordinated patrols in the Strait of Malacca. The Government of Singapore has scheduled a Proliferation Security Initiative maritime interdiction exercise in August 2005. Based on an initiative by Japan, 16 countries, including Singapore, agreed to the regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia. The countries agreed to establish a center, based in Singapore, to coordinate information exchange on maritime piracy. Singapore and the other members of the Five Power Defense Arrangement (Malaysia, Australia, United Kingdom, and New Zealand) announced that their agreement would be expanded to deal with terrorism and other unconventional threats, including maritime security.

Singapore actively participated in counterterrorism efforts through various international fora, including the ASEAN Regional Forum, and has worked to enhance regional counterterrorism capabilities. Singaporean police conducted a regional workshop on "Explosives and Suicide Bomber Counter-Measures" to enhance the capabilities of police units in other ASEAN member countries. Singapore hosted an APEC Counterterrorism Task Force meeting to further develop proposals to enhance the counterterrorism capabilities of APEC members, as committed by leaders in November 2003.

Taiwan

Taiwan remains a responsive partner in the global war on terrorism, although it is frequently prevented from participating in international and regional fora on counterterrorism issues.

In November 2004, Taiwan authorities announced the creation of a counterterrorism policy committee chaired by the Premier of the Executive Yuan and composed of seven multi-agency task forces. Each task force is required to collect information and develop operational plans to deal with such contingencies as terrorist attacks on public infrastructure and telecommunication networks. The National Police Administration (NPA) also established a special SWAT team to respond to terrorist incidents and continues to send law enforcement personnel abroad for counterterrorism training.

Cooperation on maritime security issues advanced in 2004, as Taiwan and the United States agreed on a framework to implement the US Department of Homeland Security's Container Security Initiative (CSI) in the southern port city of Kaohsiung. Kaohsiung is one of the busiest container ports in the world and will be the eleventh port in the East Asia Pacific region to implement CSI standards designed to protect shipping containers against exploitation by terrorists and criminal elements. US customs and border protection officers are tentatively scheduled to begin operations with their Taiwanese counterparts in 2005. Mote information on the Container Security Initiative is available at http://www.state.gov/documents/organization/45321.pdf

Although not a member of the United Nations and therefore unable to become a party to international treaties, Taiwan has nonetheless committed to implement the 12 UN conventions and protocols related to international terrorism, and has taken some unilateral measures to combat illicit money flows. In 2004, Taiwan's legislative Yuan amended the Money Laundering Control Act, strengthening provisions to identify and seize terrorist assets and property. Taiwanese authorities also continue to maintain a centralized database to verify and track remittances.

Thailand

There were no significant acts of international terrorism in Thailand during 2004. However, there was a significant increase in acts of domestic violence fueled by a renewed separatist insurgency based in the far southern provinces of Thailand. The violence has been primarily concentrated in the Muslim majority provinces of Pattani, Yala, and Narathiwat, which are located along the Thai-Malaysian border. Most estimates put the number of deaths this year directly related to the violence at over 500. The victims include government officials and civilians, both Buddhist and Muslim. The Thai Government has expressed concern that Thai militants may be seeking refuge across the border; Malaysia has denied these allegations.

There is no evidence of a direct connection between militants in southern Thailand and international terrorist organizations such as Jemaah Islamiya and al-Qa'ida. However, there is concern that transnational groups may attempt to capitalize on the increasingly violent situation for their own purposes. Long-standing Muslim separatist organizations in southern Thailand continue to be active to some degree, but there is little direct evidence that these groups are actively organizing the violence. Thai separatist groups by all indications remained focused on seeking autonomy or independence for the far southern provinces. Violence in the south remains focused on government officials and other symbols of Thai authority, as well as civilians.

Thailand has commitments to work with neighboring countries on counterterrorism issues and is a participant in the Southeast Asia Regional Center for Counterterrorism (SEARCCT) in Malaysia.

Thailand is also enhancing the security of its borders by implementing more effective controls. In cooperation with the G8 Counterterrorism Action Group (CTAG) member governments, Thailand has increased efforts to combat document fraud. During 2004, Thailand enhanced its ability to internally coordinate its response to terrorist financing activities. Thailand has embarked on an aggressive program to equip its air, land, and sea ports of entry with a computerized terrorist watch listing system. The system will be operational at a limited number of locations in 2005, with completion forecast for 2006.

EUROPE AND EURASIA

Overview

Major terrorist events occurred in Europe in 2004, with hundreds dying in horrific attacks in Spain, Russia, and Uzbekistan, accompanied by major successes, including broad-based international cooperation to secure the Olympics in Greece, and deepened multilateral efforts to improve capabilities to combat the threat of terrorism. European nations continued to work in close partnership with the United States in the global counterterrorism campaign and, galvanized by the Madrid bombings and growing awareness of their own vulnerabilities, took significant steps to enhance their capability to combat terrorists and their supporters. The contributions of European countries in sharing intelligence, arresting members of terrorist cells, and interdicting terrorist financing and logistics continued to be vital elements in the war on terrorism.

The European Union (EU) remained a key partner in the war on terrorism and has moved to strengthen Community legal and administrative capacity, and that of EU member states, to combat terrorism. The EU created the position of Coordinator for Counterterrorism following the Madrid attacks in March. International judicial cooperation advanced as EU members brought into effect the European Arrest Warrant and enacted implementing legislation for US-EU Extradition and Mutual Legal Assistance Treaties. The June US-EU Summit Declaration on Combating Terrorism reaffirmed a wide range of transatlantic commitments to cooperate closely and continue to work together to develop measures to maximize capacities to detect, investigate and prosecute terrorists and prevent terrorist attacks, prevent access by terrorists to financial and other economic resources, enhance information sharing and cooperation among law enforcement agencies, and improve the effectiveness of border information systems. The United States and EU initiated a dialogue on terrorism finance issues in September.

European nations are active participants in a variety of multilateral organizations that have made contributions in counterterrorist efforts, including the G8, NATO, the Financial Action Task Force (FATF), the Organization for Security and Cooperation in Europe (OSCE), the International Maritime Organization (IMO), and the International Civil Aviation Organization (ICAO). They worked actively with the United States and other partners through these organizations to establish and implement best practices, build the counterterrorism capabilities of "weak but willing" states, and institutionalize the war against terrorism globally. OSCE members have committed themselves to becoming parties to the 12 UN terrorism conventions and protocols, to work together to modernize travel documents and shipping container security, and to prevent and suppress the financing of terrorist organizations.

Terrorist activity and the presence of terrorist support networks in Europe remain a source of concern. Efforts to combat the threat in Europe are sometimes hampered by legal protections that make it difficult to take firm judicial action against suspected terrorists, asylum laws that afford loopholes, inadequate legislation, or standards of evidence that limit use of classified information in holding terrorist suspects. Ease of travel within Schengen visa countries also makes Western Europe attractive to terrorists. Some European states have at times not been able to prosecute successfully or hold some of the suspected terrorists brought before their courts. The Clearinghouse mechanism for authorizing EU-wide terrorist designations was unable to generate consensus on action to block the assets of charities associated with HAMAS and Hizballah.

In March, Islamic extremists linked to the Moroccan Islamic Combatant Group (GICM) detonated 10 bombs on commuter trains during the Madrid rush hour, killing 191 persons and wounding hundreds more; several suspects later blew themselves up in order to avoid arrest.

Russia endured a series of deadly terrorist attacks in February, August and September 2004, including explosions on the Moscow subway, suicide bomb attacks that brought down two Russian airliners simultaneously, a suicide bomber attack outside a Moscow metro station, and the seizure of approximately 1,200 hostages, most of whom were school children, at a school in Beslan, North Ossetia, that left at least 331 people dead, more than half of them children, and hundreds of others injured.

In Uzbekistan in March and April 2004, suicide bombers attacked a popular bazaar and other locations resulting in the death of more than a dozen police officers and innocent bystanders. A further round of bombings in July outside the US and Israeli Embassies and the Uzbekistani General Prosecutor's Office resulted in the death of four Uzbekistani security officers.

Deploying thousands of security personnel and working closely with partners from across the globe, Greece staged successful and secure summer Olympic Games.

The Netherlands was rocked by the brutal assassination of a prominent film director by a Dutch-born Moroccan dual national. The killing and its aftershocks, like the Madrid bombings, focused attention throughout Europe on the potential threat from extremist groups recruited from within Europe.

Cooperation among European law enforcement authorities continued to be key to counterterrorism successes. Intra-European information exchanges shed light on the continent-wide linkages of the Madrid bombers and facilitated the April arrests across Europe of suspects connected to the Turkish Revolutionary People's Liberation Party/Front (DHKP/C).

Enhancing regional counterterrorism cooperation has been a priority for the United States. Toward that end, the US Department of State co-hosted with the Swiss Government the sixth Counterterrorism Conference for Eurasian states in Zurich, Switzerland, in December 2004. Participants included most of the Eurasian states, Turkey, and representatives from the World Health Organization, the EU, Interpol, OSCE, NATO, and Poland's recently developed Foundation for the Prevention of Terrorism and Biological Threats. The conference provided participants an opportunity to describe and identify components of their national programs to respond to a bioterrorism attack, and to see how their various governments would respond together to a transnational bio-emergency. The Dutch EU Presidency hosted an EU-wide conference on terrorism finance in Brussels in September, which included participation by the United States as well as other third countries and international organizations, including the United Nations.

The North Atlantic Treaty Organization (NATO) also played a key role in combating terrorism at the regional level in Europe. First and foremost, NATO continues Operation Active Endeavor (OAE), a naval operation aimed at combating terrorism by monitoring maritime traffic in the Mediterranean. Thus far, Alliance warships have hailed over 57,000 vessels and have boarded nearly 100 vessels. Currently, NATO is discussing expanding OAE into the Black Sea and strengthening the mandate's directives for searching for WMD materials. Additionally, during the Olympics, NATO provided critical chemical, biological, radiological, nuclear (CBRN), and air patrol capabilities to the Government of Greece.

Despite limited resources, the countries of southeast Europe have actively supported the international coalition against terrorism. Through the Southeast European Cooperation Initiative (SECI) Regional Center to Combat Transborder Crime, based in Romania, the twelve states of Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Hungary, Macedonia, Moldova, Romania, Serbia and Montenegro, Slovenia, and Turkey cooperated to combat organized crime and various forms of trafficking, enhance border security, and improve training for border security personnel.

In October Belarus, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Russia created the Eurasia Group, a regional anti-money laundering organization or Financial Action Task Force-style regional body (FSRB).

Albania

Despite limited resources, Albania continued to support the global war on terrorism and made progress in implementing its national action plan against terrorism, originally approved in 2002. Albania has steadfastly supported US actions against terrorism, sharing information and investigating terrorist-related groups and activities. In 2004, the Government froze the assets of terrorist financiers, curtailed the activities of suspect Islamic NGOs, and detained or expelled individuals suspected of having links to terrorism or attempting to foment religious intolerance. In July, Parliament passed legislation to implement asset freezes against persons designated as terrorists or terrorist financiers by the United Nations. Albania has begun cracking down on ethnic Albanian extremists, including leaders of the ultranationalist Albanian National Army. In December, police apprehended four arms traffickers dealing in surface to air missiles likely intended for regional extremists.

Armenia

In 2004, Armenia continued to be a full and active participant in the global war against terrorism. A new Armenian criminal law more clearly defining terrorist acts replaced Soviet-era legislation in 2003. The National Assembly passed legislation outlawing money laundering and financing of terrorism in December 2004, bringing Armenian legislation in line with its international obligations to combat terrorist finance, and strengthening the ability of the Government to prosecute terrorist-related offenses. Border Guards seized 42 grams of non-weapons-grade radioactive material in 2004. While none of the material was likely destined for terrorist organizations, the Border Guards have shown that they are capable of detecting and interdicting nuclear material. The Armenian Central Bank fully cooperated with efforts to freeze terrorist assets but reported finding none in 2004.

Austria

Austria continued its participation in multilateral missions, its cooperation with US law enforcement agencies, and its leadership in regional anti-terrorism initiatives. In 2004, the Government made efforts to tighten financial oversight of suspected terrorism financing.

In 2004, the Interior Ministry's intelligence arm, the Federal Office for the Protection of the Constitution and for Terrorism (BVT), stepped up surveillance of suspected Islamic extremists; it also increased monitoring of suspected extremist prayer houses in Vienna and surveillance of the Egyptian al-Jama'ah al-Islamiyah movement and of suspected Afghan extremists entering Austria as asylum seekers. Austria passed legislation to allow police video surveillance of public spaces. Austria's legal and institutional framework to combat terrorism was strengthened. Its money laundering and terrorist financing legislation is now in compliance with FATF 40+9 Recommendations, and the EU-wide arrest warrant became effective in 2004.

Azerbaijan

Azerbaijan and the United States have a very good record of cooperation on counterterrorism issues that predates the September 11, 2001, attacks. With the 2004 ratification of the Convention on Offenses and Certain Other Acts Committed on Board Aircraft and the Convention on the Physical Protection of Nuclear Material, Azerbaijan has acceded to all 12 international conventions and protocols relating to terrorism. While Azerbaijan has served as a route for international mujahedin with ties to terrorist organizations seeking to move men, money, and materiel throughout the Caucasus, the Azeri Government has stepped up its efforts and succeeded in reducing their presence and hampering their activities. Azerbaijan has taken steps to combat terrorist financing and identify possible terrorist-related funding by distributing lists of suspected terrorist groups and individuals to local banks. An experts group, led by the National Bank of Azerbaijan, has prepared draft anti-money laundering legislation that would establish a financial intelligence unit (FIU) and expand the predicate crimes for money laundering beyond narcotics trafficking.

In 2004, the Government continued to make significant arrests of individuals associated with terrorist groups. Members of Jayshullah, an indigenous terrorist group, who were arrested in 2000 and tried in 2001 for plotting to attack the US Embassy in Baku, remain in prison.

Belgium

In 2004, the Belgian Government continued anti-terrorist cooperation with European neighbors and the US Government on multiple levels. Belgium remained active in sharing information with the United States regarding terrorist threats to US interests or persons. In 2004, Belgium and the United States broadened cooperation under the Container Security Initiative—in place for the Port of Antwerp since 2003—to include a second Belgian port, Zeebrugge. The two governments also agreed to place radiation detection equipment in the Port of Antwerp under the Department of Energy's Megaports program.

The Belgian judicial system applied the rule of law to terrorist conspirators in 2004, when it charged 10 suspects with criminal conspiracy related to possible terrorist activities. Eight of the defendants were found guilty, receiving sentences ranging from 11 months to five years.

One of those convicted, Tarek Maaroufi, had been found guilty in the 2003 terrorist trial in Belgium and will serve a total of seven years in prison based on that previous conviction. A Belgian appellate court rejected appeals filed by nine of the 18 convicted in Belgium's